Quote:
Originally Posted by AllBlackBimmer
How should I go about picking a real estate agent? (There has to be some agents on here that can chime in!)
How do I go about knowing what I can afford?
How do I go about estimating monthly bills, etc.
Any other info would be helpful. This is the start of a new life  |
How do I go about knowing what I can afford?
A good rule of thumb is: your mortgage payment (principal and interest) + taxes + homeowners ins should not exceed 28% of your gross (before tax) income and your total debt payments should not exceed 35% of your gross (before tax) income. This is not only a decent benchmark to manage your expenses but also approximates how a lender will qualify you.
Make yourself a budget and be thorough and honest about it.
How do I go about estimating monthly bills, etc.?
Talk to friends who own homes in your area. Get a sense of all the expenses you may be taking on. Depending on where you live, you'll need to mow, fertilize, and water grass and landscaping. You'll need to pay for utilities. Last but not least you'll need to replace things over time: roofs, air conditioners, paint, appliances. You need to think about how long these things will last and what do they cost to replace, averaged per month. As you look at houses, get a feel for how old these things are in each house.
Once you figure out cost side of things, find a good lender. One example: Check out Provident.com. If you have a good FICO score and can put 20% down, you should see very attractive rates from them. We've done 4 refi's with them on our current house. Very competitive rates and very transparent process. Even if you decide not to use them, their website is Freakin Fantastic for tracking mortgage rates.